MarketBeat Week in Review – 06/01 - 06/05

Key Points

• Stocks sold off sharpy to end the week with money moving out of technology stocks and into many of the Dow components; it’s a rotation within the AI trade, not a repudiation of the trade. 

• A red hot Jobs report decreases the likelihood of an interest rate cut; that puts next week’s read on inflation in sharp focus. 

• Earnings season is nearly over, but investors are eyeing the SpaceX IPO scheduled for June 12.   

Stocks were down to end the week with the Nasdaq and S&P 500 indexes trading sharply lower. Could this be the beginning of the sector rotation that investors have been waiting for? The strong May Jobs report could provide a clue, with healthy hiring in manufacturing and construction, providing a tailwind for many Dow components.

The robust Jobs report also decreases the likelihood of an interest rate cut. That puts the focus on next week’s release of the Consumer Price Index (CPI), which will provide the latest inflation data. But the really big news next week will be the SpaceX IPO scheduled for June 12.

Earnings season is winding down, and summer is finally here. But it’s still likely to be a volatile time for stocks. The MarketBeat analysts will stay on top of the stocks and stories driving markets. Here are some of our most popular stories from this week.

Articles by Thomas Hughes

A new month means it’s time for Thomas Hughes to provide his five stocks to watch in June. This month’s list focuses on artificial intelligence (AI) but on several under-the-radar, small-cap names that could have the strongest upside in a second-half rally.

Dollar General NYSE: DG issued forward guidance as cautious as the consumers it caters to. Hughes noted that the company’s focus on repairing its balance sheet coincides with a technical pattern that suggests strong upside ahead.

Ulta Beauty NASDAQ: ULTA was another example of a company that delivered strong earnings, but saw its stock get punished. Hughes explained why ULTA is offering strong value at these levels, and why a rebound could begin this summer.

Articles by Sam Quirke

The Blue Origin explosion was a setback for Amazon.com Inc. NASDAQ: AMZN as it attempts to compete with SpaceX NASDAQ: SPCX. However, Sam Quirke pointed out that the overall health of the company’s business makes the stock’s pullback an opportunity, not a dealbreaker.

The last two weeks of earnings season has helped reverse the worst fears about a SaaS-pocalypse. This week, Quirke highlighted the earnings reports from MongoDB Inc. NASDAQ: MDB and HubSpot Inc. NYSE: HUBS. Both stocks moved higher after the reports. Mongo DB may be the cleaner story, but Quirke explained why HubSpot might have the larger upside.

Articles by Chris Markoch

Many investors know they need exposure to AI. However, Chris Markoch noted that in many cases they already have the box checked, particularly if they’re investing in an index fund. Markoch gave investors a framework to help them cover all the bases related to the AI trade.

Many investors want to find the next NVIDIA NASDAQ: NVDA. Markoch listed three under-the-radar growth stocks that have a long runway for growth.

During times of market volatility, dividend stocks shine. However, not all dividend payers are equal, even those that have the title of Dividend King. This week, Markoch highlighted three dividend kings that reward investors with both the pedigree and fundamentals to be reliable compounders.

Articles by Ryan Hasson

Rocket Lab NASDAQ: RKLB has been one of the best-performing space stocks in 2026. RKLB has recently pulled back more than 20% from its 52-week high, but Ryan Hasson explained why this appears to be a healthy consolidation and doesn’t reflect a problem in the business fundamentals.

Rocket Lab was also one of the stocks that Hasson included in a list of five space stocks with proximity to SpaceX. Once the IPO mania quiets, investors will look for options with companies that have strong ties to SpaceX. These are the names that could take off.

Alphabet Inc. NASDAQ: GOOGL has pulled back after the company announced an $80 billion equity offering to fund AI infrastructure. As Hasson noted, this could be bullish or bearish depending on an investor’s point of view.

Articles by Leo Miller

Broadcom Inc. NASDAQ: AVGO stock fell sharply after an otherwise strong earnings report. The reason? The company reiterated but didn’t raise its forward guidance. This could be a case of investors moving the goalposts on AI expectations.

The Pentagon’s $1.1 billion Drone Dominance program has sent drone stocks soaring. One stock, with ties to Donald Trump Jr., made headlines. Leo Miller highlighted three drone stocks that will be essential to manufacturing this fleet of low-cost, one-way attack drones.

Stock buybacks are generally considered bullish. However, investors need to read the fine print. This week, Miller analyzed three companies that recently issued stock buybacks and explained why each announcement is sending different signals to investors.

Articles by Nathan Reiff

Customized loan obligations (CLOs) are obscure equity vehicles that can be uncomfortable for retail investors. However, they can offer a diversified approach to high-yield fixed income. Nathan Reiff explained how CLOs work and analyzed three CLO ETFs that can give investors exposure to this sector with less risk.

Is IBM Corp. NYSE: IBM cornering the quantum computing market? The company is on tap to receive $1 billion in federal funding, which dwarfs other quantum companies. However, Reiff pointed investors to two smaller quantum companies that may still have opportunities to carve out a specialized niche.

The direct random-access memory (DRAM) market is soaring. However, it can be difficult for retail investors to access some of the top publicly traded stocks in the sector. That’s why Reiff highlighted one little-known DRAM ETF that provides an easy way to gain exposure to the sector.

Articles by Dan Schmidt

Costco Wholesale Corp. NASDAQ: COST delivered a solid earnings report, but it wasn’t enough to overshadow valuation concerns. Dan Schmidt broke down the report and explained that inflation cuts both ways and is likely to result in slower growth, making it harder to command a higher share price.

Schmidt also explained why gaming stocks are finding themselves at the back of the line in the race to gain access to memory. Read his article to focus on the specific issues related to three of the largest players in the industry.

Just when consumers saw egg prices go down, tomato prices are up. Schmidt noted that this is pinching two consumer-facing food companies as much as it is pinching consumers.

Articles by Jeffrey Neal Johnson

Jensen Huang is the kingmaker of AI stocks. One of this week’s beneficiaries was Marvell Technology NASDAQ: MRVL. Huang gave the company a public endorsement, and the stock soared. Jeffrey Neal Johnson highlighted Marvell’s custom silicon advantage, which could be setting up a bear trap and may justify its premium valuation, for now.

Hyperscalers are racing to cover all their bases when it comes to the AI data center buildout. That includes backup power, which is where Generac Holdings NYSE: GNRC comes in. The company is making a pivot into the data center space, and Johnson noted that the company has the contracts to back it up.

Johnson also explained why Yum! Brands NYSE: YUM may present investors with a case of addition by subtraction. The company is in talks to divest itself of its Pizza Hut chain of restaurants, which have been a drag on the business. The move would clean up the company’s balance sheet and raise the company’s valuation.

Articles by Jennifer Ryan Woods

It was another busy week for retail stocks, as some of the specialty and second-tier retailers delivered earnings reports. Jennifer Ryan Woods was all over it and explained why up was down.

For example, Burlington Stores Inc. NYSE: BURL and Macy’s Inc. NYSE: M both delivered strong earnings reports with raised guidance. But the response did not reflect those results. Investors sold BURL, and Macy’s stock got a tepid boost.

It was a different story for Kohl’s Corp. NYSE: KSS. The company’s earnings report was better-than-feared, and investors sent KSS higher.

Articles by Peter Frank

Fifth Third Bancorp NASDAQ: FITB delivered its first earnings report since completing its merger with Comerica. Peter Frank explained why the merger makes the bank larger, but more complicated than it was before. For now, analysts believe in the long-term outlook once the merger is digested.

It may be a contrarian indicator, or a canary in the coal mine, but shares of FirstCash Inc. NASDAQ: FCFS are soaring along with the company’s revenue. The company is the nation’s leading integrated operator of pawn stores and provider of short-term consumer loan services.